OECD Product Market Regulation (PMR) Indicators: How does Austria compare? ___________________________________________________________________________________ Competitive product markets foster economic growth and can improve the living standards of citizens. OECD’s Product Market Regulation Indicators assess the alignment of a country’s regulatory framework with internationally accepted best practices. The Economywide Indicator measures the distortions to competition that can be induced through the involvement of the State in the economy, as well as the barriers to entry and expansion faced by domestic and foreign firms in different sectors of the economy. This indicator is complemented by a set of Sector Indicators that measures regulatory barriers to competition at the level of specific network and service sectors.
Overall PMR Indicator Index scale 0 to 6
Austria
1.44
OECD average
1.38
5 Most competitionfriendly countries 5 Least competitionfriendly countries
1.00 1.82 0.0
2.0
4.0
6.0
Economy-wide PMR Indicators: a breakdown by major components Index scale 0 to 6 from most to least competition-friendly regulation
6
Austria
OECD average
5 Most competition-friendly countries
5 Least competition-friendly countries
5 4 3 2 1 0 Public Ownership
Involvement in Business Operations
Simplification and Evaluation of Regulations
Admin. Burden on Start-ups
Barriers in Service Barriers to Trade & Network sectors and Investment
Note: All the averages include only OECD countries. Information refers to laws and regulation in force on 1 January 2018. Source: OECD 2018 PMR database.
ECONOMY-WIDE HIGHLIGHTS
Overall, regulatory barriers to competition in Austria are slightly above the OECD average. Public ownership is in line with other OECD countries and the governance of state-owned enterprises is in line with key OECD best practices. The administrative burden on start-ups is less burdensome than in many OECD countries. However, there is scope for ensuring transparency in the interaction between interest groups and public officials during the regulatory process, and regulatory procedures when firms interact with the government are cumbersome.
Economy-wide PMR indicators: a breakdown by sub-components Index scale 0 to 6 from most to least competition-friendly regulation Distortions Induced by State Involvement Simplification and Evaluation of Regulations
Complexity of Regulatory Procedures
6 5 4 3 2 1 0
Interaction with Interest Groups
Involvement in Business Operations
5 Least competition-friendly countries
Assessment of Impact on Competition
6 5 4 3 2 1 0
Price controls
Governance of SOEs
Direct Control
Scope of SOEs
Gov’t Involv. in Network Sectors
Public Ownership
6 5 4 3 2 1 0
5 Most competition-friendly countries
Public procurement
OECD average
Command & control regulation
Austria
Barriers to Domestic and Foreign Entry
Barriers to Trade Facilitation
Barriers to Trade and Investment
Treatment of Foreign Suppliers
6 5 4 3 2 1 0
Tariff Barriers
Barriers in Service & Network sectors
5 Least competition-friendly countries
Barriers to FDI
6 5 4 3 2 1 0
5 Most competition-friendly countries
Barriers in Network sectors
Licenses and Permits
Admin. Burden on Start-ups
Admin. Requirements for Lim. Liab. Companies and Pers.Owned Enterp.
6 5 4 3 2 1 0
OECD average
Barriers in Services sectors
Austria
Note: All the averages include only OECD countries. Information refers to laws and regulation in force on 1 January 2018. If the blue bar does not appear on the chart for a specific indicator, it means that its value is 0. Source: OECD 2018 PMR database.
SECTOR-SPECIFIC HIGHLIGHTS The regulatory set-up in network sectors is in line with the OECD average, with the exception of transport by rail and by water. In contrast, there is room for improvement in the regulation of professional services, where barriers to entry are higher and conduct regulation is stricter than in most OECD countries. The same applies to the rules regulating retail distribution and the retail sale of medicines.
Regulation in network and service sectors PMR Indicators for network sectors Index scale 0 to 6 from most to least competition-friendly regulation Austria 5 Most competition-friendly countries
6
OECD average 5 Least competition-friendly countries
5 4 3 2 1 0 Electricity
Gas
Rail
Air
Energy
Road
Water
Fixed
Transport
Mobile
E-Communications
PMR Indicators for professional services* and retail distribution Index scale 0 to 6 from most to least competition-friendly regulation Austria 5 Most competition-friendly countries
6
OECD average 5 Least competition-friendly countries
5 4
3 2 1
0 Lawyers
Notaries
Accountants
Architects
Professional services
Civil engineers
Real estate agents
Retail Retail sale of distribution Medicines Retail trade
* When comparing the indicators across countries, it should be kept in mind that the activities undertaken by specific professions may vary between countries. Note: All the averages include only OECD countries. Information refers to laws and regulation in force on 1 January 2018. Source: OECD 2018 PMR database.
OVERALL ASSESSMENT
Regulatory barriers to competition in Austria are limited, but there is room for improving product market regulation in some sectors and domains.
Strengths
Challenges
The governance of state-owned enterprises is in line with key OECD best practices. For example, publicly owned firms are subject to the same laws and regulations that apply to privately owned firms, boards of SOEs nominate their CEO, and mergers or equity issuances do not need to be approved by the government.
Regulation in the e-communications sector is close to the international best practice. However, the government owns a share, though a small one, in the largest operator in the sector.
The country has a good set-up for assessing the impact on competition of new regulations. All regulatory impact assessments include an assessment of potential distortions to competition, and there is a requirement to engage with stakeholders when designing new regulations.
Professional services are subject to strict regulations, especially in term of entry requirements, which are more restrictive than those imposed in many other OECD countries.
There is a lack of rules regulating the interaction between interest groups and public officials during the regulatory process. There are no transparency requirements apart from an obligation to register in a public registry. In addition, there is no regulation dealing with conflict of interests that involve appointed public officials and senior civil servants, and no public officials have a compulsory coolingoff period when they leave their post.
Retail distribution is characterised by a restrictive regulatory set-up, with rigid entry requirements for large outlets and strict regulations of shop opening hours.
The regulatory framework for retail sale of medicines is less competition-friendly than in most OECD countries. There are rigid restrictions on the number and location of pharmacies, and on their opening hours.
Further information
“What are the 2018 OECD PMR indicators?” PowerPoint presentation on OECD PMR website
Vitale, C., et al. (2020), " The 2018 Edition of the OECD PMR Indicators and Database – Methodological Improvements and Policy Insights", OECD Economics Department Working Papers
Please visit our website : http://oe.cd/pmr Contact us at: PMR2018@oecd.org